Norway Labor Party Approves to Study Lofoten Oil Exploration

April 21 (Bloomberg) -- Norway’s ruling Labor Party agreed
on a first step in a process that could open environmentally
sensitive waters off the northern Lofoten islands to oil and gas
exploration.

Labor’s national delegates voted 194 to 104 in favor of
allowing a so-called impact study of petroleum activity in the
restricted areas in the next legislative period from 2013 to
2017 at a congress today, Aftenposten reported.

The government, which also includes the Center Party and
the Socialist Left, is divided over opening the restricted
blocks in the Norwegian Sea. Labor’s junior partners were in
2011 able to postpone a decision on a study until after this
year’s election, and reiterated their opposition at party
meetings this year.

The opposition Conservative Party, which is leading Labor
in polls, favors opening Lofoten, Vesteraalen and Senja, which
are home to unique cold-water coral reefs, welcome some of
Europe’s largest seabird colonies and provide breeding grounds
for wildlife ranging from fish to whales, to the industry.

Oil and gas companies, including 67 percent state-owned
Statoil ASA, have been lobbying for a chance to tap resources
that could reach as much as 3.4 billion barrels of oil
equivalent according to industry group KonKraft. Statoil has
argued it is urgent to open the areas to replace reserves as
Norway’s crude production is expected to fall for a 13th
consecutive year to less than half a 2000 peak.